CalPERS Opposes Bill to Curb Oil Speculation

July 25, 2008 (PLANSPONSOR.com) - Saying it has a
fiduciary duty to workers and retirees to diversify their
investments, the California Public Employees' Retirement
System (CalPERS) released a statement on Thursday opposing
the Stop Excessive Energy Speculation Act of 2008, The
Politico reported.

The fund, which has $1.3 billion of its total $239
billion investment portfolio in commodities, according to
The Politico, said legislation limiting its ability to
invest in the commodities market would hurt workers and
retirees invested in the pension fund.

Among other things, the bill would substantially
broaden federal regulators’ authority over the vast
marketplace for privately negotiated derivatives, called
swaps and would limit the stakes that speculators and
other noncommercial energy traders could take, both in
private transactions and in the public futures markets,
according to the New York Times.

Reuters reports that the bill failed a key
procedural vote on Friday and will now be set aside in
order for lawmakers to consider other legislation. Senate
Democrats said the legislation was needed to give the
government new powers to curb speculators, whom many
lawmakers accused of being behind the run-up in crude oil
and gasoline prices, while Republicans strongly opposed
the speculation bill, arguing the legislation should be
modified to also boost U.S. oil production.